With the expectation that the Federal Reserve has a less aggressive monetary policy, is that it begins to glimpse which will be the sectors that could rise in the short term. Although, on the other hand, there is debate about what might happen to the US debt ceiling. So, various operators give their opinion on which are the Cedears that could shoot up in the second half of the year.
Technological
If market expectations regarding the Fed are confirmedanalysts argue that periods of low interest rates are usually the best for the technology sector. What happens is that these companies can access financing at a lower cost, which implies rapid development in a short time.
About, Damián Vlassich, Senior Equity Analyst at IOLsaid that “we consider that what remains of 2023 will be good for those who have built a position in technology companies. This is because, after the falls suffered in 2022, they have gone on to register extremely attractive valuation ratios, even below several defensive companies or in the value sector.”
And he expanded: “After analyzing the five big tech (Amazon, Apple, Meta, Microsoft and Google)we consider Google as one of the most attractive, considering its growth in the cloud sector and attractive valuation ratios.” It should be noted that so far this year, the Nasdaq registers an increase of more than 21% in dollars.
The analyst also noted that Meta, was the company that rose the most when presenting its balance sheet since the share shot up 14%, reaching values above US$230 per share, which represents a rise of more than 90% so far in 2023.
He also highlighted that Microsoft rose 7%, topping $300 per share, when showing its latest quarterly results; therefore, it had an increase of more than 28% so far in 2023. In turn, Alphabet managed to once again exceed analyst projections and Apple grew by more than 4.5%, also when presenting its results.
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Regarding the international context, since PPIalso analyzed the Fed’s position. “At the beginning of the month, it raised the reference rate by an additional 25bps as expected, reaching the range of 5%-5.25%. According to the latest communications from the agency, This could have been the last rise, finally reaching the long-awaited pause. Even so, the market prices with a probability of 36% an additional increase in the next meeting, on June 14.”
But also they paid attention to what might happen to the US debt ceiling. “Do we think this is possible? Tiny probability. It is not the first time in history that we have encountered a similar scenario, and in all of them both parties gave ground, finding a middle ground to agree and avoid default.”
So, in this context, from PPI, in the last monitor of cedearsthey kept in the wallet Warren Buffett/BRKB the following papers: Apple, American Express, Bank of America Corp, Chevron, Coca-Cola, and Occidental Petroleum Corp. turn the wallet High Dividend PPIincluded: Exxon, Chevron, Barrick Gold, Bank Of America Corp, Coca-Cola, Johnson & Johnson, Procter & Gamble Co/The, and Verizon Communications Inc.
Source: Ambito
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